John Marbury.com

Private Mortgage Insurance (PMI) Removal

Private Mortgage Insurance (PMI) Removal

Homeowners Protection Act (HPA or PMI Cancellation Act) requires lenders to remove the PMI payments once the loan to the original value hits 78%, and payments are current.  HPA does not apply to Government loans such as FHA and VA.  Contact your lender for information on these types of loans. 

 

Borrowers can expedite this process by paying down on their mortgage to 80% and below and contracting the lender  to get their instruction on the additional process of formally having the mortgage insurance removed.  Usually they will require the request to come in writing.

 

With Value of homes increasing, it may be a good time to look into requesting the removal of your PMI based on current value.  If you have owned your home for 2 years or more and the servicer determines the value of your home is 75% of the mortgage amount then the borrower can request the removal of the PMI.  

 

If the value has increased due to a substantial amount of improvements to the property so that the loan to value  is less than 80%, then the borrower can request removal within 2 years.

 

Note that you will typically need to have made timely payments for the last 12 months.

 

For other helpful information check out the following links

 

CFPB: When can I remove Private Mortgage Ins (PMI)?

 

Fannie Mae: PMI Removal

 

Freddie Mac PMI Removal

 

For more information call (205-266-5669)  or email (jmarbury@1stfed.com) John 

If you would like to apply for a new click on my online application: https://bytepro.1stfed.com/ConsumerPortal/?lo=jmarbur1

Or call me and I can fill it out over the phone.

 

Thanks!

John

 

John Marbury

205-266-5669

john.marbury@colonybank.com

NMLS #740833

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